American Funds Target 2025 is a target-date fund designed for investors planning to retire around the year 2025. The fund’s asset allocation gradually shifts from stocks to bonds over time, becoming more conservative as the target date approaches. This helps to reduce risk and protect investors’ savings as they near retirement.
Target-date funds are popular among investors because they offer a simple and convenient way to save for retirement. They are also relatively low-cost, making them a good option for investors who are just starting to save or who have limited investment experience.